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BC 2022 Budget - February 22, 2022

All budget proposals are subject to legislative approval.

Bill 6 Budget Measures Implementation Act, 2022 received Royal Assent June 2, 2022.

Forecast Budget Deficits

	2021-22 $0.5 billion
	2022-23 $5.5 billion
	2023-24 $4.2 billion
	2024-25 $3.2 billion

Total Provincial Debt Forecast

	Mar 31, 2021 $91.5 billion
	Mar 31, 2022 $105.4 billion
	Mar 31, 2023 $117.3 billion
	Mar 31, 2024 $125.8 billion

Income Tax Credits

Clean buildings refundable income tax credit

new, temporary tax credit of 5% of qualifying expenditures

for qualifying retrofits that improve energy efficiency of eligible commercial and multi-unit (4 or more units) residential buildings

for corporations with a permanent establishment in BC, or an individual, including a trust, that:

	is resident in BC, or
	is not resident in BC but has income earned in BC for income tax purposes

expenditures must be made or incurred under terms of an agreement entered into after February 22, 2022 and paid before April 1, 2025

legislation is included in Bill 6 (link above)

Equity tax credit budget for clean technology

temporarily increased for the 2022 to 2024 years by $2.5 million to $41 million

increase is allocated to investments made in clean technology businesses

Personal small business venture capital tax credit

Corporate small business venture capital tax credit

Tax credits extended

Scientific research and experimental development tax credit:

extended for 5 years to August 31, 2027

Tax credits extended for 2 years to the end of 2024:

	shipbuilding and ship repair industry tax credit
	training tax credit for apprentices
	training tax credit for employers

Sales Taxes

Effective Feb 23, 2022:

PST exemption for used zero-emission vehicles (ZEVs)

passenger vehicle surtax threshold for ZEVs increased to $75,000 from $55,000

hydrogen fuel is classified as a Category 1 alternative motor fuel and is exempt from motor fuel tax if:

	it is purchased for use in an internal combustion engine vehicle, and
	it is not produced by electrolysis using coal-generated electricity, unless the carbon dioxide emitted is captured and stored or captured and sequestered.

Effective Apr 1, 2022:

	PST exemption for heat pumps
	PST on fossil fuel combustion systems that heat or cool buildings or water increased to 12%

Effective July 1, 2022:

	businesses that are marketplace facilitators for sales or leases of certain goods, services or software for third parties through their online marketplace will be required to collect and remit tax on certain BC sales and leases.
	marketplace facilitators will be required to charge PST on marketplace services they provide to sellers.
	PST exemption for tobacco is removed

Effective Oct 1, 2022:

tax on private sales of motor vehicles will be based on the greater of the reported purchase price and the average wholesale value of the vehicle - this does not apply to a trade-in.

For information on all tax changes see BC Provincial Budget Tax Changes.

The above does not include all fiscal measures. See Budget 2022 on the BC website for complete budget details.

Revised: October 26, 2023